Terraform MCP Server for Cursor: Setup & Config

What you can do with Terraform in Cursor

Choose it for Terraform Registry research and platform workspace operations through one MCP integration.

• Manage Terraform workspaces, variables, tags, and runs.
• Expose selected Terraform capabilities to a shared HTTP MCP client.

Before you start: Terraform in Cursor

• Docker installed and running
• An MCP-compatible assistant

This command is the README's local Claude Code Docker launch. HCP Terraform or Enterprise access additionally uses TFE_ADDRESS and TFE_TOKEN, which must be forwarded into the container as shown in the README's client-specific examples. Public Registry use and platform access are distinct configurations.

Terraform Cursor configuration

1. Choose Cursor configuration scope

   For Terraform MCP Server, open Project: .cursor/mcp.json User: ~/.cursor/mcp.json. Merge into mcpServers at project or user scope.

2. Add Terraform MCP Server to Cursor

   Use the terraform-mcp-server entry below in mcpServers. Keep Terraform MCP Server's documented stdio connection fields and your other Cursor entries.

3. Check Terraform MCP Server in Cursor

   Terraform MCP Server: Enable in Cursor’s MCP settings; inspect tools.

{
  "mcpServers": {
    "terraform-mcp-server": {
      "command": "docker",
      "args": [
        "run",
        "-i",
        "--rm",
        "hashicorp/terraform-mcp-server"
      ],
      "env": {}
    }
  }
}

Terraform tools available to Cursor

Terraform's stored tool list documents 2 tools; compare it with Cursor's connected tool list, because the stored list is not a live check.

search_providers

Find search_providers under Terraform in Cursor's MCP settings; inspect its arguments when the agent requests a call.

get_provider_details

Find get_provider_details under Terraform in Cursor's MCP settings; inspect its arguments when the agent requests a call.

Retrieve provider details; named in the README's tool-filtering example.

Terraform: full stored tool descriptions

Troubleshooting Terraform in Cursor

• Cursor must find docker and a running Docker engine for Terraform MCP Server. Enable the project/user entry in MCP settings and inspect its tools.
• Terraform MCP Server uses stdio here: Cursor must keep the configured process running; protocol output belongs on stdout and diagnostics on stderr.
• Known limitation: Connected clients and models may receive sensitive Terraform data.
• Known limitation: Write-capable platform operations need deliberate permission and tool configuration.
• Known limitation: The complete tool catalog is linked externally rather than included in the supplied README.
• General Cursor troubleshooting lives in the /clients/cursor guide.

Frequently asked questions